strategy power point 1 (2)

8/8/2019 Strategy Power Point 1 (2)

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StrategyStrategy

y Large scale , future oriented plans for

interacting with the competitive

environment to achieve companyobjectives.

y Strategy refers to the ideas ,plans and

support that firms employ to compete

succesfully against their revials


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Strategic ManagementStrategic Management

Strategic management is defined as the setof decisions and actions that results in theformulation and implementation of plans

designed to achieve a company`s objectivesMeaning

S.M is the systamatic analysis of thefactors associated with customers and

competitors (the external environment ) andthe organisation itself (the internalenvironment) to provide the basis forrethinking the current management process.


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Concept of StrategyConcept of Strategy

y A course of action aimed at ensuring that

the firm will achieve its objectives by

matching its internal resources and skillswith the environmental oppurtunities and

risks its faces .


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Needs and importance of StrategicNeeds and importance of Strategic

ManagementManagementy To keep pace with changing environment.

y To boost Employees efficency.

y

To furnish a strong base for UnifiedDecision Making.

y Better Decision Making.

y Communication functions.

y Improved Perfomance.

y Measuring Perfomance.

y Co-ordination function.


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Benefits of Strategic ManagementBenefits of Strategic Management

The principle benefit of strategicmanagement has been to help organizations

formulate better strategies through the useof the more systematic,logical and rationalapproach to strategic choice.

Financial Benefits:

NonFinancial Benefits:


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Financial Benefits:

1.Improvement in sales.2.Improvement in profitability.3.Improvement in productivity.

NonFinancial Benefits:

y 1.improved understanding ofcompetitors strategies.2.Enhanced awareness of threats.

3.Reduced resistance to change.4.Enhanced problem-preventioncapabilities.


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Strategic formation processStrategic formation process

Set objectives

IndividualIncentive Plans

Group

Incentive Plan

Benifits

Formulation Strategy


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Importance of Strategic FormationImportance of Strategic Formation

ProcessProcessy Cause Strategic Thinking.

y Mechanism to ease the communication of

ideas.y Coordinate the efforts of those involved

in the process.

y Inject Structure into the thinking withoutrigidity.


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Nature of the Formulation ProcessNature of the Formulation Process

It can be both

~ formal and informal.

~Simple and complex.

~Analytical and qualitative.

~Involve many people or just few.


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Stakeholders in Business.Stakeholders in Business.

y 1. (Economics, Accounting & Finance /Banking & Finance) a person or groupowning a significant percentage of a

company's sharesy 2. (Business / Industrial Relations & HR

Terms) a person or group not owningshares in an enterprise but affected by or

having an interest in its operations, suchas the employees, customers, localcommunity, etc.


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StakeholdersStakeholders

y Stock holdersy Creditorsy Employeesy C

ustomersy Suppliersy Governmenty Unions

y Competorsy Local Communitiesy The General Public


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VisionVision

y A Statement that presents a firm`s

strategic intent designed to focus the

energies and resources of the company

on achieving a desirable future.

y It is a short term process.

y It is the first step in Strategic Planning.


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MissionMission

y A mission Statement is a brief description

of a Company`s fundamental Purpose.A

mission statement answers the questionWhy do we exist.

y The mission Statement articulates the

company`s purpose both for those in the

organisation and for the public.


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PurposePurpose

y An anticipated outcome that is intended

or that guides your planned actions."

y

A company's purpose answers thequestion, "Why do our mission and vision

matter?" That can include giving back to

employees, management and

shareholders.


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BusinessBusiness

Business means all Profit-directed

economic and commercial activities that

provide goods and services necessary to a

nations standard of living.


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Business DefinitionsBusiness Definitions

Davis,Keith and RobertL.Blomstrom

Business in any enterprise which

makes, distributes or provide any articleor service which other members of the

community need and are able and willing

to pay for.


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Business DefinitionsBusiness Definitions

Arthur

Complex field of commerce and industryin which goods and services are created

and distributed in the hope of profit

within a frame work of laws and

regulations.


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Characteristics of BusinessCharacteristics of Business

y Sale, transfer and exchange of goods.

y Regularity of dealings.

y

Business is a profit seeking activity.y Business is inseperable from the society.

y It involves risk and uncertainity.

y

Production or acquistion of goods.


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Characteristics of Modern Business.Characteristics of Modern Business.

y Change

y Bigness

y

Diversificationy Globulization

y Science

y

Informationy Government Interface

y Competetion


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Objectives of BusinessObjectives of Business

There are three main objectives, they are

x Economic Objectives

x Social Objectives

x Human Objectives


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Economic ObjectivesEconomic Objectives

High Standard of living

Increase in Productivity and effeciency.

Economic Progress Economic Stability

Discipline in Economic Life

Profit


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Social ObjectivesSocial Objectives

Justice and equity.

Community of Relations.

Communituy of improvement

Conservation ofNational Resources.

Welfare Programmes.

Improve personal integrity of Business.

Development of individual Person. Personal Security

Human Dignity and Relations


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Human ObjectivesHuman Objectives

Fair deal with emplooyees

Development of emplooyees

Job Satisfication of employeed


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Goals of BusinessGoals of Business

y Content Provider and to expand reach.y Customers stay to be updated with news

about company.y Know the Customer.y Promotion of Products.y Stay abreast of current news and treands.y Share ideas with likeminded individuals.y

Increase brand awareness.y Provide customer service and support easily.y Find a job.y Recruit.


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y People to like brand.

y Colloborate on business projects.y Earn respect within Industry.

y Attract advertisers and make money.

y More involved with local prospects.y More involved with people on an

international and global level.

y Keep up with Competors.


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Corporate GovernanceCorporate Governance

Corporate Governance refers to the

relationship that exists between the

different participants and defining the

direction and perfomance of a corporatefirm . The following bodies are the main

actors in Corporate Governance

TheC

EO

- the manager The board of Directors

The Share Holders


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Corporate Governance deals with

the rights and responsibilities of aCompany`s Management ,its board, share

holders and various Stake holders. How

well companies are run affects their

performance, market confidence and

private sector investment.Corporate

Governance is a key element in improving

economic efficiency and growth as well asenhancing investor confidence.


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Social ResponsibilitiesSocial Responsibilities

y

Economic Responsibilitiesy Legal Responsibilities

y Ethical Responsibilities

y

Discretionary Responsibilities

strategy power point 1 (2)

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